New York [US]: The US Senate Committee on Banking, Housing and Urban Affairs is holding three hearings this coming week centered around the collapses of Silicon Valley Bank and Signature Bank in March, CNN Business reported.
The three hearings will take place from Tuesday through Thursday. Federal regulators were first called to answer questions about the bank collapses by the Senate Banking Committee and House Financial Services Committee in March, according to CNN Business.
Since then, the Federal Reserve and Federal Deposit Insurance Corporation have released reports detailing management missteps at SVB and Signature Bank, as well as federal regulators’ own mistakes in properly addressing red flags preceding the banks’ demises, it added.
The Federal Reserve recommended a sweeping re-evaluation of its regulatory and supervisory functions in its report, and Barr called on the central bank to strengthen those processes, according to the CNN Business report.
Calls for stronger regulation of the banking sector revved up this month after the collapse of First Republic Bank, which was taken into Federal Deposit Insurance Corporation (FDIC) receivership and sold to JPMorgan Chase on May 1.
It added Republican Senator Kevin Cramer and Democratic Senator Elizabeth Warren on May 9 re-introduced a bill to tackle “regulatory inefficiencies” in banking security.
According to the report, Warren also called on former First Republic chief executive Michael Roffler to answer for the regional lender’s failure and “gross mismanagement.”
Economic and bank sector leaders including Fed Chair Jerome Powell and JPMorgan CEO Jamie Dimon have recently assured the public that the banking sector is stable.
